Markets in the Asia-Pacific (APAC) region opened the week on a high note, buoyed by last Friday’s strong performance on Wall Street. Investors remain optimistic as they turn their attention to major events, including Donald Trump’s second inauguration as U.S. President and a slew of anticipated executive actions.

APAC Stocks Rally as Wall Street Momentum Continues

Most APAC markets traded higher, extending the positive sentiment from the U.S. market’s gains last week. While the focus is on the upcoming U.S. administration transition, regional investors are also keeping an eye on geopolitical developments and global economic indicators.

TikTok Ban Suspended and Executive Orders Expected

In a significant move, Donald Trump has provided a temporary reprieve for TikTok, delaying the implementation of a U.S. ban on the platform. This development comes as Trump prepares to sign dozens of executive orders within hours of taking office. These actions are expected to shape the early days of his second term, with potential impacts across various sectors.

European Futures Steady After a Strong Close

European equity futures suggest a stable start for the cash markets, with the Euro Stoxx 50 futures trading flat. This follows a robust session on Friday, where the index closed higher by 0.8%. Traders in Europe will closely watch developments in the U.S. and other global markets as they gear up for the week.

Currency Markets: Dollar Softens, Key Pairs Steady

The U.S. Dollar Index (DXY) edged lower but remains above the 109 mark. In currency pairs, EUR/USD is trading slightly above 1.03, while USD/JPY hovers around 156. These levels reflect cautious optimism as investors weigh potential policy shifts under the new U.S. administration.

Israel Approves Gaza Ceasefire Deal

In geopolitical news, Israel’s cabinet has given final approval to a six-week ceasefire agreement in Gaza, effective from Sunday. This development is seen as a step toward stabilizing the region, though markets will watch for further developments in the coming weeks.

Key Events to Watch

The week is set to be eventful, with several highlights on the economic and political front, including:

• German Producer Prices: A key indicator of inflationary trends in Europe’s largest economy.
• Bank of Canada (BoC) SCE: Insights into the central bank’s economic outlook.
• Second Inauguration of U.S. President-elect Donald Trump: A major event that could set the tone for global markets.
• Supply from the UK: Important for energy and commodities traders.

As markets navigate these events, traders will stay alert to how policy changes and economic data shape the global investment landscape. Stay tuned for updates throughout the week!